Depreciation of an IP that was a PPOR ????????

Viewing 7 posts - 1 through 7 (of 7 total)

Scotty B
Member
@scotty-b
Join Date: 2004
Post Count: 44
September 15, 2004 - 3:25 am
I will be renting my home whilst working away.
The property will be rented for a minimum of 12 months.
I am unsure at this stage if I will return to the property.
I spoke to an account and he told me I could depricate the build and fixtures/fittings and make a claim on my tax return for the period the property is rented – I’d didn’t think this was allowed by the ATO????
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 15, 2004 - 3:42 am
Why not? If it is income producing, then you are entitled to make a claim for these legitimately.
You can also keep claiming it as your main residence and sell tax free as long as you do not rent it out for more than 6 years.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Gambini
Member
@gambini
Join Date: 2004
Post Count: 42
September 15, 2004 - 4:31 am
it sure is buddy jyou can even claim for trips to go to your property in emergencies whether they happen or not wink wink
[buz2]
[cigar]
[baaa]
depreciator
Member
@depreciator
Join Date: 2003
Post Count: 541
September 16, 2004 - 2:56 am
Hi ScottyB,
Strictly speaking, the depreciation clock starts ticking on your fixtures and fittings (Depreciable Assets) when you purchase the property. So there will be some lost depreciation for the period you lived there. The building itself depreciates at a flat rate per year from the date of construction. NB it would need to have been built after July 85 to be eligible for the building write-off.
Any questions, feel free to call.
Scott – Depreciator 1300 660033
depreciator
Member
@depreciator
Join Date: 2003
Post Count: 541
September 16, 2004 - 3:10 am
Hi ScottyB,
Strictly speaking, the depreciation clock starts ticking on your fixtures and fittings (Depreciable Assets) when you purchase the property. So there will be some lost depreciation for the period you lived there. The building itself depreciates at a flat rate per year from the date of construction. NB it would need to have been built after July 85 to be eligible for the building write-off.
Any questions, feel free to call.
Scott – Depreciator 1300 660033
waynel2
Member
@waynel2
Join Date: 2004
Post Count: 311
September 17, 2004 - 2:57 am
Hi Terry,
In regards to the 6 years time frame does that start when you first move out of your PPOR and rent it out, or does the 6 years restart if you move back into your PPOR for a while and rent it out again?
It’s just that I have a rental which was my PPOR, then I rented it, moved back into it, now I’m renting again…
cheers
wayne
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 17, 2004 - 4:00 am
Wayne. Yes it starts when you move out and then if you move back in and move out again it restarts! But you can only have one PPOR at one time. So if you are renting now while renting out you other house which was your PPOR, then you may want to consider moving back for a short time in before 6 years is up.
Have a look at Tax Determination 95/5.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au